Comments on: Sorry If I Offend

By: Offers That Offend | Denver Real Estate Blog

Offers That Offend | Denver Real Estate Blog — Mon, 25 May 2009 04:02:49 +0000

[...] Real Estate Zebra wrote a blog about “Sorry if I Offend” likening the job of Realtor to that of a Sports [...]

By: Jay Thompson

Jay Thompson — Sat, 04 Nov 2006 18:59:51 +0000

Excellent analogy. The similarities are striking.

My 15 year old son ref’s soccer. Some recreational, some competitive. Adult coaches and parents get in his face sometimes. It makes me want to beat them, but he handles it very well. I love it when he “red cards” an irate coach and they have to sulk off the field, tossed out by a 15 year old for being a jerk. Most of the time they find him after the game and apologize…

By: Jessica Beganski

Jessica Beganski — Sat, 04 Nov 2006 13:34:51 +0000

I’d like to address your comments on helping buyer clients determine whether an offer is going to offend a seller.

As a buyer’s agent, I face this question often. I also respond that I don’t know for sure what the seller is thinking – I can guess but that’s always a stretch. I go on to say that I can only help the buyer determine his/her motivation and willingness to purchase the house and what price is appropriate for that client.

I can’t remember where I found this methodology of pricing an offer but I often use it. Maybe it will help you with some of your clients:

Steal/Deal/Real are the three stages of an offer or three price points to consider when putting together an offer.

Steal – is the amount you would love to pay and represents a price that is significantly under market value. You know, the price you would brag about to all your friends and relatives.

Deal – an amount you would pay for a house that still represents a savings, although not grossly under market value.

Real – This is real market value – not the list price. This is the highest price a buyer would be willing to pay.

Before I discuss an initial offer amount with clients, I tell them to think of these three prices up front. What price would represent a “steal”, then the price that would be a “deal” and then the amount that would be “real.” I have them write it down on a piece of paper and save it.

In this way, I have prepared my clients for the negotiation process in advance. Not all clients choose to go this route and go directly to a “real” offer or start with the “deal” offer first. Others only want to pay the “steal” price and if it’s not accepted, we move on.

It is up to the buyer to evaluate his/her comfort with the risk of losing out on a home to another buyer by offering lower than “real”. Although less commonplace in my area (Connecticut) than before, I am still running into multiple offer situations on well-priced houses.

Conversely, there is the risk of overpaying. Again, it’s up to the buyer to determine which and how much risk he/she is willing to take.

http://berealct.wordpress.com/

By: Doug Lindstrom

Doug Lindstrom — Sat, 04 Nov 2006 05:31:44 +0000

I love the analogy of agents being sporting officials. As a broker, I feel that even though I have a favorite team (my client), I am still obligated to be fair and get to a consensus. If a referee is only calling fouls on one team, the crowd will start questioning the credibility of the ref.
This is a great post and truly gave me a better understanding of my role as a broker. Sometimes being too much of an advocate for a client will not accomplish the goals of my client.

By: Kristal Kraft

Kristal Kraft — Sat, 04 Nov 2006 00:36:36 +0000

Good post. Realtors are very much problem solvers. We work together to make sure everything works, despite our differences.

What I find very frustrating is how sometimes we get blamed for things beyond our control. …

By: Melissa

Melissa — Fri, 03 Nov 2006 22:44:44 +0000

Hi-
Interesting analogy on sports and real estate, haven’t heard that one before. I read articles all day long on the buying/selling process in today’s market and you brought up some valid points on offending the seller. More and more transactions are getting canceled this way, because of buyers “low-balling” the seller. Good info.

By: Jonathan Dalton

Jonathan Dalton — Fri, 03 Nov 2006 21:42:03 +0000

Communication is the key in either case. I’ve been a sportswriter for almost 20 years and the one constant from coaches at any level is the desire for communication. If a referee makes a mistake, fine. (Well not really, but still.) Say you didn’t see it, say you missed it, come up with a plausible reason but say something. Failing to communicate causes the largest problems.

I had the shoe on the other foot recently when I was asked to run the lines at a youth soccer game. Yikes. I kept looking around, hoping there was a Jumbotron to help. No such luck.